Minnesota
State Resources
Minnesota has over 11,800 lakes, making water recreation a huge part of life. In fact, the Jaycees Ice Fishing Extravaganza hosted annually on Gull Lake is the largest charitable ice fishing contest globally. Both advanced manufacturing and life sciences are important industries in Minnesota. The state features medical excellence in one of the most respected medical institutions in the world, The Mayo Clinic. The Minnesota Department of Employment and Economic Development (DEED) serves as the primary economic development agency for the State of Minnesota. Its mission encompasses “supporting the economic growth and success of individuals, businesses, and communities by enhancing opportunities for development.” The Business and Community Development division offers financial and technical assistance to businesses, communities, and economic development professionals. The division supports Minnesota-based companies seeking to grow through a variety of funding mechanisms.
Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Matching Grants
Administered under the Launch Minnesota, the Minnesota SBIR/STTR Matching Grant provides funding to Federal SBIR/STTR first time Phase I or Phase II awardees. SBIR/STTR Phase 1 or Phase 2 awardees receive grants based on a sliding scale of their federal award up to $35,000 for Phase I awards and up to $50,000 for Phase II awards. Companies must register with the MNSBIR, Inc.’s SBIR/STTR Catalyst to apply. Please note that awards may not be available throughout the year, depending on earlier demand.
The State Small Business Credit Initiative
The State Small Business Credit Initiative (SSBCI) is part of the American Rescue Plan Act (ARPA) of 2021 and includes $10 billion for state, territory and tribal business finance programs. Minnesota administers several programs under the SSBCI initiative some of which target early stage small businesses.
Growth Loan Fund
The Growth Loan Fund program provides direct loans to eligible seed and early-stage businesses. The Growth Loan Fund targets Minnesota-based early-stage businesses that have raised less than $250,000 or slightly later-stage businesses that are not yet ready for a Series A round. The fund provides loans up to $400,000 based on 20% of the total investment in a defined funding round, not to exceed 12 months. The business must be planning to raise equity in order to qualify.
Direct Investment Venture Capital
The Direct Investment Venture Capital program invests in Minnesota-based seed and early-stage startups. This program targets sectors such as advanced manufacturing, agricultural technology/food technology, climate tech, life sciences, software, and technology. The Direct Investment Venture Capital Program is managed by the University of Minnesota Office of Investments & Banking. This program invests directly in startups that have secured a lead investor in their current financing round.
